Pearson Raises Profit Outlook on Lower Interest, Taxes

Nov. 3 (Bloomberg) -- Pearson Plc, the owner of the
Financial Times, said it will beat its profit forecast because
of lower-than-estimated interest and tax costs.

Sales for the first nine months of the year grew 6 percent,
the London-based company said in a statement today. That
compares with 7 percent for the same period a year earlier.
The publisher raised its forecast for full-year adjusted
earnings per share to about 83 pence from about 80 pence, as it
benefits from lower-than-predicted interest and tax charges.

Sales at Pearson’s education business, which provides
training materials and textbooks to governments, companies and
schools, increased 7 percent in the first nine months. Pearson’s
results exclude the effect of currency movements and
discontinued businesses.

“The world economy is neither simple nor helpful this
year,” Chief Executive Officer Marjorie Scardino said in the
statement. “We can’t count on the trading environment to get
any easier any time soon, but we do expect our durability and
our innovation to continue to help us succeed.”

Debt increased to 1.1 billion pounds ($1.75 billion) from
430 million pounds at the beginning of the year after the
company made acquisitions, Pearson said.

Pearson rose 3.3 percent to 1,146 pence in London trading
yesterday. The stock gained 14 percent this year before today,
giving the company a market value of about 9.35 billion pounds.